German construction supplier VBH Deutschland is to be liquidated
In a significant move, the VBH Group, a leading provider of products and system solutions for window and door manufacturers and installers, has announced the liquidation of its German subsidiary, VBH Germany GmbH. This decision comes as the parent company aims to secure the future of the subsidiary by transferring ownership to a new investor.
The liquidation process, currently underway in Korntal-Münchingen, Ludwigsburg district, does not affect the parent company or other subsidiaries of the VBH Group, which operates in more than 20 countries and employs approximately 1,600 people globally.
The decision to liquidate VBH Germany GmbH is a strategic withdrawal, likely motivated by operational or financial challenges specific to the German subsidiary. The insolvency or financial difficulties appear to be localized to the German operations, as exemplified by related insolvency proceedings involving related companies like Stürtz in Germany, highlighting a challenging market environment in the region.
The sale process signals the parent company’s intent to withdraw from direct management of the German subsidiary, potentially as part of cost cutting, strategic realignment, or addressing ongoing financial burdens in that market. Despite this development, the VBH Group continues its operations, with the company reporting growth in its international regions.
Talks with potential investors for a takeover of the entire company or parts of it were unsuccessful. The liquidation of VBH Germany GmbH does not necessarily mean the end for the subsidiary, as the parent company is seeking a new investor to ensure a sustainable operational structure under new ownership.
The impact on the overall company is that by putting VBH Germany up for sale, the parent company aims to stabilize or safeguard the overall VBH Group’s future. This move suggests a refocus on profitability and sustainability for the entire group, although it inherently involves uncertainty about the German subsidiary's immediate fate and potential restructuring.
Approximately 450 employees will lose their jobs as a result of the liquidation, with around 450 employees still based in Germany. The VBH Group, originally known as United Hardware Trade, achieved a turnover of around 500 million euros last year.
The liquidation of VBH Germany GmbH does not limit the VBH Group's activities to Germany. The company continues to offer a comprehensive range of products and system solutions for window and door manufacturers and installers worldwide.
The liquidation of VBH Germany GmbH, while potentially indicating localized operational or financial challenges within the subsidiary's finance, is not an impediment to the VBH Group's ongoing business growth in other industry sectors worldwide. The parent company's strategic move to transfer ownership to a new investor is designed to secure the subsidiary's future and ensure long-term business sustainability across all markets of operation.
